Detailed financial statements for Victoria's Secret & Company (VSXY): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Victoria's Secret & Co. operates as a retail enterprise, primarily dealing in lingerie, apparel, and beauty merchandise. Their extensive product range includes intimate wear such as bras and panties, along with sleepwear, general clothing, athletic attire, swimwear, and a variety of beauty offerings. The company, which was established in 1963, maintains its main corporate office in Reynoldsburg, Ohio.
Analysis Summary
Trailing-twelve-month margins: gross margin 39.6%, operating margin 8.0%, net margin 5.5%.
At the current price of $89.41, VSXY trades at a P/E of 20.23 and an ROE of 45.94%. Market capitalisation stands at $7.1B.
Balance sheet quality for VSXY: current ratio of 1.2, net debt of $2.33B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $312.0M represents 194% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| Revenue | $6.34B | $6.18B | $6.23B | $6.55B |
| Cost of Revenue | $4.09B | $3.94B | $3.95B | $4.17B |
| Gross Profit | $2.26B | $2.24B | $2.28B | $2.38B |
| Research & Development | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $1.78B | $2.00B | $1.97B | $2.11B |
| Operating Expenses | $1.78B | $2.00B | $1.97B | $2.11B |
| Operating Income | $478.0M | $246.0M | $310.0M | $271.0M |
| EBITDA | $751.0M | $530.0M | $565.0M | $516.0M |
| Interest Expense | $60.0M | $99.0M | $86.0M | $70.0M |
| Pre-tax Income | $417.0M | $147.0M | $221.0M | $208.0M |
| Income Tax | $79.0M | $31.0M | $52.0M | $19.0M |
| Net Income | $348.0M | $109.0M | $165.0M | $161.0M |
| EPS | $4.35 | $1.39 | $2.05 | $2.00 |
| EPS (Diluted) | $4.14 | $1.39 | $2.05 | $1.93 |
| Shares Outstanding (Diluted) | $84.1M | $78.6M | $80.7M | $83.0M |
Income Statement (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Revenue | $1.47B | $2.27B | $1.56B | $1.61B |
| Gross Profit | $536.0M | $855.0M | $586.9M | $760.0M |
| Operating Income | -$19.0M | $229.0M | $82.1M | $259.8M |
| EBITDA | $41.0M | $285.0M | $79.4M | $259.8M |
| Net Income | -$37.0M | $184.0M | $47.7M | $183.0M |
| EPS | $-0.46 | $2.14 | $0.56 | $2.18 |
| EPS (Diluted) | $-0.46 | $2.14 | $0.56 | $2.18 |
Balance Sheet (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| Cash & Equivalents | $427.0M | $270.0M | $227.0M | $518.0M |
| Short-term Investments | 0 | 0 | 0 | 0 |
| Receivables | $141.0M | $152.0M | $159.0M | $186.0M |
| Inventory | $1.05B | $985.0M | $955.0M | $1.07B |
| Total Current Assets | $1.74B | $1.53B | $1.44B | $1.88B |
| Property, Plant & Equipment | $2.08B | $2.19B | $2.25B | $2.36B |
| Goodwill | $365.0M | $367.0M | $367.0M | $367.0M |
| Intangible Assets | $426.0M | $400.0M | $376.0M | $246.0M |
| Total Assets | $4.71B | $4.60B | $4.53B | $5.01B |
| Accounts Payable | $481.0M | $513.0M | $419.0M | $493.0M |
| Short-term Debt | $4.0M | $4.0M | $4.0M | $4.0M |
| Total Current Liabilities | $1.58B | $1.61B | $1.38B | $1.51B |
| Long-term Debt | $1.27B | $1.12B | $973.0M | $971.0M |
| Total Liabilities | $4.31B | $4.16B | $3.87B | $4.10B |
| Retained Earnings | $186.0M | $178.0M | $343.0M | $504.0M |
| Total Equity | $383.0M | $417.0M | $640.0M | $856.0M |
| Total Debt | $2.79B | $2.70B | $2.70B | $2.85B |
| Net Debt | $2.36B | $2.43B | $2.47B | $2.33B |
| Working Capital | $158.0M | -$81.0M | $66.0M | $376.0M |
Balance Sheet (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Cash & Equivalents | $249.0M | $518.0M | $207.0M | $522.0M |
| Total Assets | $5.13B | $5.01B | $4.77B | $5.16B |
| Total Liabilities | $4.45B | $4.10B | $3.92B | $4.10B |
| Total Equity | $653.0M | $856.0M | $790.0M | $990.0M |
| Total Debt | $3.19B | $2.85B | $2.85B | $2.90B |
Cash Flow (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| Net Income | $338.0M | $116.0M | $169.0M | $189.0M |
| Depreciation & Amortization | $274.0M | $284.0M | $258.0M | $238.0M |
| Stock-based Compensation | $48.0M | $56.0M | $60.0M | $55.0M |
| Change in Working Capital | -$195.0M | -$80.0M | -$6.0M | -$53.0M |
| Operating Cash Flow | $437.0M | $389.0M | $425.0M | $499.0M |
| Capital Expenditure | -$164.0M | -$256.0M | -$178.0M | -$187.0M |
| Acquisitions | -$387.0M | $1.0M | 0 | 0 |
| Stock Repurchased | -$250.0M | -$125.0M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Free Cash Flow | $273.0M | $133.0M | $247.0M | $312.0M |
Cash Flow (Quarterly)
| Year | 2025-Q4 | 2026-Q1 | 2026-Q2 | 2026-Q3 |
|---|
| Operating Cash Flow | -$180.0M | $673.0M | -$137.0M | $402.0M |
| Capital Expenditure | -$52.0M | -$24.0M | -$54.0M | -$74.0M |
| Free Cash Flow | -$232.0M | $649.0M | -$191.0M | $328.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $12.0M | $14.0M | $13.0M | 0 |
Growth & Margins (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| Revenue Growth (YoY) | | -2.6% | +0.8% | +5.2% |
| Net Income Growth (YoY) | | -68.7% | +51.4% | -2.4% |
| EPS Growth (YoY) | | -68.0% | +47.5% | -2.4% |
| Shares Change (YoY) | | -6.6% | +2.8% | +2.8% |
| FCF Growth (YoY) | | -51.3% | +85.7% | +26.3% |
| Gross Margin | 35.6% | 36.3% | 36.7% | 36.4% |
| Operating Margin | 7.5% | 4.0% | 5.0% | 4.1% |
| EBITDA Margin | 11.8% | 8.6% | 9.1% | 7.9% |
| Net Margin | 5.5% | 1.8% | 2.6% | 2.5% |
| FCF Margin | 4.3% | 2.2% | 4.0% | 4.8% |
| Effective Tax Rate | 18.9% | 21.1% | 23.5% | 9.1% |
Per-Share Data (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| FCF Per Share | $3.25 | $1.69 | $3.06 | $3.76 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $80.0M | $78.6M | $80.7M | $80.0M |
What to look at in Consumer Cyclical companies
- 5y avg operating margin (Cycle average) — Look at the cycle average, not the current year (peak or trough).
- Inventory turnover (>=4x/year) — Healthy retail rotates inventory fast. A drop signals weak demand.
- 5y avg ROIC (>=12%) — Cyclicals with avg ROIC >12% are structural winners.
- Net debt / EBITDA (peak) (<3x trough) — In cyclicals debt kills in recessions.
- Current Ratio (>1.5x) — Survives 12-18 months without operating cash.
- Altman Z-Score (>2.99 safe) — Bankruptcy model — key in cyclicals sensitive to recessions.
Profitability
| Return on Equity | 45.94% |
| Return on Invested Capital | 11.66% |
| Return on Assets | 7.33% |
| Gross Margin | 39.62% |
| Operating Margin | 7.99% |
| Net Margin | 5.47% |
Financial Health
| Debt / Equity | 2.93 |
| Current Ratio | 1.36 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 2.35 |
Key Ratios (10y)
| Year | 2023 | 2024 | 2025 | 2026 |
|---|
| P/E | 9.69 | 18.74 | 17.74 | 27.25 |
| P/B | 8.80 | 4.91 | 4.59 | 5.09 |
| P/S | 0.53 | 0.33 | 0.47 | 0.67 |
| Gross Margin | 35.6% | 36.3% | 36.7% | 36.4% |
| Operating Margin | 7.5% | 4.0% | 5.0% | 4.1% |
| Net Margin | 5.5% | 1.8% | 2.6% | 2.5% |